SEC Files New Fraud Complaint as Lottery.com Shares Sit 94% Below High

The SEC named four individuals in its litigation release. That includes Lawrence Anthony DiMatteo, the former Lottery.com CEO, and executives Ryan Dickinson and Matthew Clemenson. The other person is Vadim Komissarov, who was the CEO of SPAC Trident Acquisitions Corp. The companies announced the merger in November 2020 and completed it in October 2021.

Accounting concerns surfaced in mid-2022, when the board learned of potential fraud tied to the company’s reported revenue and cash balances.

DiMatteo stepped down as CEO on July 22 of that year after the company admitted to exaggerating its cash balance by $30 million in an SEC filing. The board had already fired Chief Financial Officer Dickinson on July 1, and Chief Revenue Officer Clemenson resigned on July 11.

The company nearly collapsed in 2024 as legal and financial fallout from the scandal mounted. Lottery.com’s shares are now trading about 94% below their all-time high of $26.45, underscoring the scale of investor losses tied to the SPAC-era implosion. It dropped almost 17% on January 26 after markets reacted to the news.

Major Accounting Fraud

The SEC alleges that the defendants designed several fake revenue schemes to inflate Lottery.com’s financials before and after the Trident merger. According to the complaint, these transactions accounted for the majority of the company’s reported revenue during key reporting periods. That misled investors both before and after the public listing.

This included a $9 million sham sale of customer data, with the proceeds going toward two Mexican businesses, which returned the money to its sources.

The regulator also points to a fabricated $30 million advertising deal executed shortly before the merger closed. There were also two additional bogus sales totaling more than $35 million after the company went public.

The regulator seeks permanent injunctions, disgorgement, civil penalties, and officer-and-director bans against the defendants.

Without admitting any wrongdoing, Dickinson and Clemenson agreed to permanent bans from serving as directors or officers of public companies. They also agreed to “pay disgorgement, prejudgment interest, and/or a civil penalty in an amount to be determined by the court.”

Other Legal Action Against the Company and Executives

Lottery.com has already been embroiled in several lawsuits. A U.S. federal judge in New York has dismissed two securities fraud lawsuits against the company and former executives.

The judge found the original allegations legally insufficient to proceed in their current form. However, the court allowed plaintiffs to file amended complaints, keeping the litigation alive.

A newly consolidated case involves investors who formed a putative class action. They claim violations of federal securities law between Nov. 2020 and July 2022. Those amended complaints remain pending, leaving the company exposed to continued civil liability.

Additionally, in Feb. 2025, the U.S. Attorney’s Office for the Southern District of New York also arrested Vadim Komissarov on various charges. He allegedly profited from the SPAC merger by selling Lottery.com shares before the issues became public. This included making $600,000 in 2022 by selling almost 300,000 shares.

Komissarov allegedly tried to disrupt the SEC’s ongoing investigation by telling Lottery.com executives what was happening. He also provided false information to the SEC in November 2024. He faces up to 15 years in prison, with the criminal case still pending.

Short-Seller Claims and Market Turmoil

At the same time, Lottery.com has previously claimed it was the target of a coordinated “short-and-distort” campaign. In 2025, it said it was investigating trading activity that it believed unfairly pressured its stock price.

The company has denied wrongdoing in connection with those claims, though regulators have focused squarely on alleged misconduct tied to financial reporting and disclosure.

Trying to Turn the Page

Lottery.com originally launched as a lottery courier service. It allowed users to order lottery tickets on its app, and the courier would purchase the physical ticket on their behalf. If the ticket is a winner, the app would either pay out smaller winnings directly or arrange for the delivery of the physical ticket so the user can claim their winnings in person.

In July 2025, the company rebranded as SEGG Media as part of a broader strategic reset. It is now expanding its focus to providing AI-driven event streaming and original sports content.

In the rebranding press release, it outlined how over the previous two years it has stabilized the company’s financial situation and “appointed top-tier leadership.” It also has a $300 million credit line to finance acquisitions. Chairman Matthew McGahan said that the turnaround was complete and that the company was entering a new phase.

Whether the rebrand and strategic pivot can restore investor confidence remains uncertain. With civil and criminal cases still pending, the outcome of the SEC’s latest complaint is likely to play a significant role in determining the company’s future— and whether Lottery.com’s collapse becomes a cautionary SPAC-era footnote or an enduring regulatory case study.

Image Credit: Fry 1989 via Wikimedia Commons (license)